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tv   After the Bell  FOX Business  April 10, 2014 4:00pm-5:01pm EDT

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china came in with worse than expected exports. [closing bell ringing] down 9% year-to-date. david: it is indeed. looks like the nasdaq bloodiest of all. this is bad day on wall street. a very bad day on wall street. we haven't seen some of these levels in over two years. as we look at the nasdaq down over 3% and we look at the s&p, wow, that s&p at 1833. it did not hold the levels a lot of traders were looking at. so we may see more bleeding tomorrow again. we'll deal with today first. very shortly the question turns to what happens tomorrow. do these, does this selloff continue for another day? and then if you're going into a friday with levels at this level, what happens over the weekend. "after the bell" starts right now.
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liz: hitting all kind of floors today for major indices. let's get into today's huge market action. we have david quad la, main street investment strategist and who will tell investors what to expect, for rest of the year but how about next week? how to play the market. michael brinker, keeping a close eye on earnings. we have chris gersch, joining us what is a lively pit from the cme. nicole petallides at new york stock exchange. jo ling kent at nasdaq. we've got you covered. let's start with jo ling. >> we're seeing a bloody scene here at nasdaq. it was worst performer of the day. look at some stocks that did not farewell. down more than 4%. vertex, bed, bath & beyond, trip advisor. the only stock to hold any sort of water, c.h. robinson, fared
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fairly well up more than a percent, keeping it together. the nasdaq created this problem and sustaining it. for the first time in a few days we've seen a slide, this two-year low of a slide. we've seen across the board momentum stocks, tech stocks, biotech stocks, all headed in the same direction. and that was down. david: chris, i want to do a little forensics here and find out what the trigger is. we know the motive, generally speaking a lot of people were taking profits off the table. what was really the trigger? was it china? they had terrible numbers on both experts and imports. earnings jitters. folks want to take jitters before earnings come back. a good jobs report. perhaps the fed. means the fed will continue with its tapering and even taper more so. what was the trigger? >> david, what the trigger was today was a technical day. if you look at s&p futures chart, now trading at 1827 handle, down almost 38 points on the day, it was massive selling.
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a series of lower lows and lower highs. at no point in time and this is perfect for a trader, did ever breach a high made 20 minutes earlier. so to say on the set side was so easy. you really never had to cover your stop losses placed as those new highs. traders kept on mounting on all the way to the close. david: interesting. liz: david, we had lowered expectations for earnings pretty much on many sectors particularly the financials. we talked a lot at the last 20 minutes of this program with liz ann sonders of charles schwab and charlie gasparino, saying financials are crucial regardless no matter you look at it. was it lower expectations for earnings or people finally woke up and said, it is not a great time to be in equities and is that the right assessment? >> i think the market has been looking for reasons to sell off. last year the market looked for reasons to melt-up higher. this year the market looked for reasons, investors have looked
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for reasons to sell and you know, whether financials do well this year or not, i think the market can still hang in there and give us a decent return but what we're seeing, today, and this past week, and what we saw in the latter half of january is indicative of this sawtooth pattern we'll see this week. a very choppy market with a lot of volatility and hopefully some modest gains yet this year. this is not, this is not marking a top for equities. we're still in a secular bull market and we have further to go. today we saw indiscriminate selling by end of the day. almost all sectors of the s&p 500 down. david: michael, what about this is a set up for earnings season? everybody knows we'll have a crummy earnings season looking back to the last quarter because of weather and a lot of things and the slowdown? if earnings stink, you're covered, you got the profits and you're better you can always jump back in. how much of those earnings jitters played in today's downfall? >> i think has a lot to do with
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earnings jitters and the fact we came off a fabulous year last year of the fact that the market is flat the first four months of the year. that is not surprising. i think that is pretty good and encouraging for investors. i think we will have flat earnings growth year-over-year in the first quarter. we haven't seen that in a long time but i think we're going to reaccelerate. i believe investors will give first quarter corporate earnings a pass because of weather. i certainly think it is. we're starting to thank you out in minneapolis. we're having 70-degree days, and second quarter, third quarter and fourth quarter earnings will accelerate and market will be better. liz: folks, it appears we're closing and settling around 1833. nicole that was one point below what mark newton said we had to see, the 1834, march lows for s&p. >> we were watching the 50 day moving average, what i'm watching liz and you've been down here and see the markets on close orders control until
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everything you see settle, that is why you see the numbers. up until one moment ago, we will say some names that were for sale. those were some of the financials. bank of new york, jpmorgan, goldman sachs. other names like nike and gamestop, best buy, the gap, mcdonald's. one of the names finished higher today. on the buy side i sigh michael kors, prepare and alcoa and pfizer. going into -- we're not done. david: nicole, you have to go to 2011 to get a steeper nasdaq than we had today. november 9th, 2011. other than the real bad periods of 2008, 2009, 2011 was a deep drop in all of the indices. do traders in nasdaq think that's where we're going? >> there is certainly concern here. i've been emailing with different traders and source who is are watching the nasdaq today, ending lower by more than 3% and there is a concern, we're
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talking earlier about china, about some numbers coming out of there but really bracing for the earnings season that has technically begun already but we're waiting to hear from the financials. across the board people who cover, analysts covering tech or biotech or companies like whole foods expressing a little bit of concern seeing that the market is not exactly as robust as it used to be and bracing for the potential correction a lot of other experts out there are talking about. nasdaq certainly not faring too well today and it is not a good scene here. liz: let me get to david kudla. it is one day and we were expecting it. anybody would know that trees don't grow to the sky here with the markets but what are you buying right now? what would be something that looks good enough, that can sustain anymore volatility or at least best sustain volatility? >> well i think the investors need to look how they diversify their portfolio for the volatile environment we're in. volatility in u.s. stocks. one area to go to is europe
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which is, we had a bond offering today in greece. 10 year bond in greece yielding below 5%. who would have ever thought that two years ago when it was yielding over 30%. but that is how far europe come and eu come. europe offers opportunity. we like dfe. wisdom tree small cap dividend etf that has performed very well. also looking at areas, the bond proxies like preferreds. pfxf which is an etf that today was about flat on the day. but yet it is up 9% contrary to date. opportunity for return and opportunity to diversify your portfolio and give you stability in a day, in a week like we've just had. david: michael, it is real hard to find any green on a day like today. but there is some green. looking at mcdonald's right now. my question, whether because what happened now is safe bet to move into defensive stocks?
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or the stocks that hit that smaller market, what do you think about a mcdonald's bet right now? >> i think mcdonald's is fine right now. we actually own mcdonald's in our dividend portfolio and i think that 3% dividend helps solidify the stock price where other stocks don't have that. they don't even have earnings on this correction. but i think you can look into the consumer sector or in the industrial sector. specifically target. i think that's a great stock to look at right now. it didn't have a big move last year. i know it's a little controversial right now because of the security breach but i think that's behind us. i think they will take care of that i think their customers are much more loyal than investors give them credit for. i think that stock will earn $4 this year and $5 next year. david: wow. >> i think it is a great buy right now. liz: jo ling, you get the last word, i think because i really like to know what the sentiment is from theou have spoken to about the nasdaq which has had the best run, by the way of any major indices since the
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lows of march of 2009? >> yeah. the sentiment like i said earlier, liz, is a mixed bag in terms of people who are expecting, analysts expecting a bit of a correction whereas others think that maybe this is just a smaller drop and we'll see things even out. it is hard to tell because last week we thought the drop was so significant and certainly nothing compared to what we saw today, 3.1%. so a mixed sentiment, a lot of analysts bracing for what is coming later this week and early next week, liz. david: all right. just a final note, i know we're drowning you folks in statistic here but the volume was 8% above average today. there were a lot, there was a lot of conviction in this move to the downside at least for today. we'll see what happens tomorrow. liz: we haven't seen that happen in a while. nicole was right on the money on that. thanks to david kudla and joe and chris, nicole and jo.
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chris we will get back with you in a few minutes. david: critical on a day like today. economic data out of china helped fuel a selloff. will the poor data keep coming or is this a chinese blip? what u.s. industries could get hit the most if the china slowly down gathers pace. liz: financials leading the market lower this year. it could be just the beginning with the sector expected to post negative earnings growth this quarter. as big bank results start rolling in tomorrow with jpmorgan and wells fargo. who of all the names might stumble and who might come out on top? we've got names. david: it is your turn. we want to know what you think about what happened today. is today's selloff a panic or just profit-taking. if it's a panic maybe it will continue. if it is profit-taking maybe it is time to get in. tweet us @fbnatb or facebook.com/afterthebell. [ male announcer ] what if a small company
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so ally bank has a that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. liz: kind of lost in all the drama was ally financial. ally falls into the red on its first day of trading. david: let's head back to nicole petallides. she is on the floor of the new york stock exchange. yeah, there were a couple ipos, huh? >> yeah. this is the busiest week for ipos since the year 2007. this is really a busy week. ally financial down over 4%. it closed at 23.98. the low was 23.76.
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it priced at 25 bucks. you all remember this. this is the former gmac. it collapsed back in 2008. remember it was resuscitated with a $17 billion bailout. i think we recouped about 15 billion of or so of that amount. today was a busy one for that particular, for that particular stock today and it also marks the largest ipo of the year, ally financial, so that is another key thing to note t was underwriters were citigroup, goldman, morgan stanley and barclays. liz: thank you very much, nicole. david: s&p futures what a day to keep an eye on what's happening there. let's go back to chris gersch in the pits of cme. how is it shaping up for tomorrow, chris? >> i think all traders were exhausted from the equity close that nothing really happen inned the last 15 minutes ever trading. they closed about 1827, right where they closed at equity close. a lot of traders are looking for does the 10-year yield dip below that 2.62 that has been the support level?
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also the big news right now is that flattening yield curve. commodities are right next door, commodities are through the roof right now. is that going to affect the things for the equity market? a lot of these traders are looking for the open tomorrow to position before getting into anything bullish or bearish. big news here. david: you don't want inversion of that yield curve. that's for sure. chris gersch, thank you very much. >> no you don't. thank you. liz: coffee hitting multiyear highs. we know about beef hitting multiyear highs. banks getting crushed today ahead of the new banks earnings season. profits are to drop 2.6% from the last quarter. that is stark contrast to previous quarter. i'm not talking year-over-year. i'm talking sequentially. the last quarter's robust growth to 24.7%. what is causing the bank's slowdown. we have suntrust research director joining us now. i have to say a couple months
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ago, charlie gasparino says, watch out they're laying off bond desk traders. is it because we have very sluggish bondland at the moment or something else at work hitting financials so hard? >> well certainly the thick trading environment is very poor but it is not the only challenge. the loan growth environment in the first quarter was much weaker than we saw in the fourth quarter. a little bit of that is seasonal but some is just, with sort of a lack of economic momentum. we're announcing a pickup in demand. liz: to see that swing more than 26% growth to the next quarter, negative 24.6%, i mean it has got to be, something is going wrong here and it is a little alarming considering we've seen a slight housing slowdown after getting some hope last year? >> yeah, so that is another contributor certainly. so you have got the loan growth issue. a capital markets issue. of course you ever the mortgage issue which is that while rates are more or less flat from the beginning of the quarter,
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they're actually up very significantly from last year. so you know, purchase application volumes are down and refinance volumes are down very significantly. liz: you use ad key word, mortgage. tomorrow we're getting wells fargo numbers and jpmorgan numbers but wells fargo more so. very entrenched in the mortgage market. what do you expect from those two names? >> our expectations are not very high. from jpmorgan we're a few cents ahead of the street but largely because of the provision. the revenues i think were a bit below. the same is broadly true for wells. the combination of issues we talked about not the least of which is the challenges in the mortgage market. liz: we know earnings are coming up but let's spin it forward for a second here. what are the headwind looking ahead? we got that very weak china data. i'm wondering china? crimea situation, ukraine a problem for financials specifically? >> well the political concerns don't tend to be a problem on the micro level but to the extent they cause reticence or
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risk off to disruption to the broader capital markets that is where tend to see it. context what is okay but not particularly accelerating u.s. economic macro backdrop you now have broader geopolitical concerns, it doesn't help. liz: beyond the big, gigantic financials, who is poised from your research to surprise to the upside during earnings season? >> that's a very short list. i mean generally what we've seen is among the regional banks those that have exposure to, to the energy patch in texas and oklahoma and a little bit into louisiana, those banks are certainly looking okay in terms of potential revenue growth. and then after that it gets to be very, very name specific thing some guys who have exposure to silicon valley as you might imagine, they're doing okay. some guys with exposure to some growth markets overseas. liz: we mentioned pnc for example. do you expect p in c to do
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relatively decently? >> relatively decently especially on commercial lines. liz: one quick lack guard. you said u.s. bancorp and m&t? >> for usb i think the challenge is that credit card charge volumes were down much more than you would typically see just seasonally in the first quarter. that will hit them. and for m&t, a combination of items we talked about. weaker loan growth. weaker mortgage coming home. liz: we can only hope for a better quarter next time around. thanks, eric. >> thanks for having me. liz: david, over to you. david: a gaping internet security hole called "heartbleed" is causing users to change their passwords. we'll tell you how you can protect yourself from intel's chief security officer. also new concerns about china's economy today after awful chinese trade data. how worried should investors in u.s. companies that have
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david: this is the steepest drop of some of these markets in over two years. the nasdaq in particular, hasn't had a drop this steep since november 2011. let's bring in jeff saut, raymond james managing director. the first question has to be, jeff, have we gotten it out of our system or is this more to come? >> i think there is more to come not just from the nasdaq but s&p finally falling to three times on that 1835 to 1840 support level. triple bottoms tend not to hold.
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that is what happened today. we fell through today. the next level of support comes in 1780 to 1800. liz: i look at what happened here and nicole had reported from the floor, jeff, volume was 8% above normal. how much do you read into something like that, that there is more conviction? that we see follow-through in the next couple trading sessions? >> i would be more interested in this turned out to be 90% downside day. meaning 90% of the total upside to downside volume comes in on the downside and 90% of the total up points to down points also come in on the downside. typically the end of the decline like this you need, at least one 90% downside day and in a lot of cases you get three or four of them. david: jeff, are you buying anything today? >> no, i haven't since last week. you had some pretty key reversals last week. you had the outside downside reversal day on friday. nasdaq breaking through its 100 day moving average on friday. it had tested that a number of
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times in the past year. it always held the 100 day, when it fell through it and closed below it on friday that was a warning shot. liz: it was interesting, we had seen some of the insiders, meaning the top executives at names like facebook and google had started to sell more than a month ago. because they had seen run-up in their stock. these numbers have not come out with any horrifically bad news. it was not like they were trading on something bad. we would hope they wouldn't do that. what lessons does this send, don't get emotional even with companies that you work at, right? >> if you listen to the message of the market the market has not felt right for the past four or five weeks. i been writing something doesn't feel right and you ought to raise a little cash here and be in cautious mode. think we're involved in long term secular bull market with many years left to run. a pullback for 10 or 15% is for buying.
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david: jeff, if the earnings come in better than expected, of course expectations are so low it probably will in couple companies anyway will we see massive buying? would you be buying based on that? >> yes i would. i think earnings estimates are $120. i was with my friend phil orlando at federated. he said their number is about 120 for the s&p. next year's numbers are about 13. if those numbers are anywhere right, we're trading 13.5 times next year's earnings. that is not expensive. >> great to see you, jeff. thank you so much. >> always a pleasure. david: thank you. liz: jumping in front of the cameras, something didn't feel right. david: i heard that from a lot of traders. next time you push enter on internet purchase on the computer could you send your credit card information directly to a hacker. the "heartbleed" security bug allows hackers to scoop out protected data during online transactions, the worse time. this bug could affect 2/3 of all websites you use including names
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like facebook, yahoo! and ebay. liz: how can consumers and companies protect themselves? we're bringing in mike fay, intel security c officer. mike, wonderful to have you here. "heartbleed" has been going on more than 24 hours now. what is the number one thing people should have done by now and if they hadn't, what do we need to do? >> well i think the first step is check with the websites that you provide your critical information to. your banking sites, your e-commerce, some of your work sites. and confirm that they have updated their site to protect you against this issue. once they have, then you need to upgrade or update your password. but doing so prior to them updating their site really doesn't add any value for you. david: let's talk about this bug in particular. there is one cybersecurity expert, he said on a scale of one to 10 this is an 11. would you agree with that? >> yeah. this is pretty painful because it has been around for two
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years. we're not aware of exploits during that time period but one would assume. and it hit such a massive part of our economy. i mean it's roughly somewhere between 60 to 80% of all websites use the core code that is at issue here. liz: looking at amazon web services, okay cupid, yahoo! mail, vulnerable. netflix we're talking about. facebook, we already mentioned. dropbox. this will take a lot of work. david was saying i need a day off to do something like this to update these passwords. >> without a doubt. you know when you look across the spectrum, the entire i.t. industry is rallying right now to update all of their environments. we've had the fix for 24 hours now. most of us have deployed to our critical environments. and now we're working back with our customers to make sure they upgrade their process. but it really goes to show the value of protecting yourself in the future.
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we can't have one password for everything. because it is so easy to have it breached in today's world. david: mike, is it one of those times when competitors put aside their differences and come together in silicon valley and you and your some of your competitors and some retailers all get together to try to figure out a solution? >> you know it, could be one of those times. we're in a very unique industry. we often get together an colaborate. we share samples of malware ain't viruses. we make sure we protect the nation west stand behind. this is probably one of those times where we look at our real trust approach. how is it that we trust communications? how do we trust applications and how do we trust the environments we operate in? liz: do you know who is behind this? you probably have an idea. can you say? is it a nation? is it a hacker? >> what is interesting about this is a google researcher
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found the bug. liz: okay. >> it is an actual bug in the code. now that the buggies known you will see hackers from all walks of life start to use this but it is not a case where we saw be attack and reverse engineered the attack. david: mike fey, really got stuff. thanks for explaining all this. intel chief security technology officer. mike, good to see you. good luck. >> thank you. liz: nice to know they work together. if the chinese economy catch as cold will the rest of the world get the flu or worse? next we'll find out what today's disappointing chinese trade data means for china, the world's second largest economy but also as it links to your investments. david: we just heard the depressing news about the big banks. not a lot of good news to report this quarter. they're having a bad one. are smaller banks though charting a very different course? some say so. we'll be asking someone who knows. the ceo of new york community bank corp when we come back.
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how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ liz: china's economy, we know it is slowing down but may be losing more steam. there are new concerns about the pace of growth in the country and whether the economy could be headed toward a harder landing than what we've seen. david: time for u.s. investors to sweat a little more? paul christopher wells fargo
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chief international strategist. thanks for coming in. both numbers look bad, exports and imports. the export numbers, they were down significantly. that is partly because of some currency issues. it is the import numbers, down over 11%. that shows that the chinese people, that the big consumer market, they're not buying a lot of our stuff. that is of real concern, is it not? >> that's right. the chinese economy is slowing down as you mentioned and probably slowing faster than a lot of investors are expecting at this point. liz: we had a trade on, i want to say three months ago, said, watch iron ore imports into china because they're bidding all kind of skyscrapers and using heavy equipment and suddenly that began to drop, that demand drop, suddenly copper, copper is the one metal, one ever the commodities that hasn't done well, it is down about 9% year-to-date. so we had some flashing warning signals, did we not? what do you do now? do you avoid direct exposure to
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china or are there other opportunities? >> we would avoid direct exposure to chinese equities at this time. we think the government is deliberately allowing the economy to show the government how much the economy is going to slow and step in with amount of stimulus they think is required to stablize things. we're not really afraid of high probability of a big crash although it remains a possibility. david: countries, even if it is not a crash, i think of countries like australia so dependent on exporting f china is not importing stuff that include stuff australia was sending to them. this could have spillover to countries like australia in a big way. >> no doubt that china's slow down will spill over into its neighbors. i just came back from southeast asia and australia, they're feeling effects of that but also in some of those economies they have a stronger domestic economy than they used to.
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that domestic economy is doing quite a bit to stablize things. the australian dollar is back over 94 cents. a sign of strength. david: new prime minister tony bab bottom apparently knows what he is doing -- abbott. >> right. liz: paul,. for a lost losers there are some winners. what could look good if people want to go in with little extra money and i can afford to lose this if it doesn't work out but i don't want to take on risk? >> i would start saying look, there is lot of unin china right now. i think the worst-case scenario after big disruption that affects rest of the world is a low october scenario. this is still-- low probability scenario. it is wise and prudent to hold off on companies invested in china for a little while. give it a quarter until we see how the government will respond to the weak gdp numbers if the first quarter. liz: we put up environmental type of companies. cleanup. we have all seen the news
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reports. they're reporting bags of fresh air. pollution is stunning it is ridiculous. pollution control, consumer products and services. but if i'm hearing you correctly, paul, use foreign companies, not chinese companies at the moment who provide that service? >> yeah, that's right. would i still give it a quarter to wait but then, yes, you're right the environmental companies, the pollution cleanup, the food companies. i just came from new zealand which has become the saudi arabia of milk really. they're doing quite well selling powdered milk, hand over fist to the chinese, not withstanding weak import numbers. i think a lot of that will be industrial. food, environmental protection and cleanup, those will be stronger sectors over next couple years. but all could be a bit vulnerable in the next quarter. david: paul, very quickly, we had wilbur ross on yesterday. he had been bullish about natural gas reserves in china because he said they're running into all kind of troubles. deeper than they thought. harder to get at. is that true.
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>> that's true. china has good natural gas reserves. there are at love natural gas reserves all over the world including in china will be a little deeper and more difficult to exploit than first thought. liz: great to have you. good information. paul christopher at wells fargo. david: thanks, paul. coming up as big banks get ready to report earnings we've heard signs of potential problems ahead dude due to mortgages and other things. what about the smaller players, commune banks. our next guest says size really does matter but smaller is better and he will tell us can why. liz: the masters is teeing off. fox business is sponsoring one of the players who has a real shot being one of the leaders. our own jeff flock, there he is, definitely not taking part in the masters. he is hitting links with the ceo of what is being called the open table of golf tee times. liz: all right.
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he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may incrcrease your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take.
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pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa.
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(announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. david: tomorrow we get earnings from a couple of big banks and analysts expect lower profits for banks this quarter, at least the big ones but what about smaller regional banks? wilbur ross likes them. also our next guest, not surprising because he has a lot of skin in the game. he is ceo of new york bank corp, the largest community bank in the country. good to see you. i wish it could be under better circumstances considering the
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market. do you think this market selloff will make things better or worse for the bank reporting coming up? >> i don't think it affects the bank reporting. i think the idea there could be a confluence of negative discussions around either earnings or other things, there are many things -- david: because expectations are already pretty low for the banks. >> yeah. david: they're expected to be down close to three%% for the quarter. -- 3% for the quarter. >> adjustments in the market are highly probable and anticipated for some time. what is the trigger? confluence of negative statements or negative effects and that could easily be the case. david: what are those events and specifically why are they bothering the big banks and not so much the community banks? >> community banks are much differently structure and they're more oriented to immediate communities they serve. large banks are internationally affected by many different things. community banks, especially ones in smallest communities around the country are affected by
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their immediate community. so the general improvement in the economy helps the local community banks. david: that's what i was going to say. that is essentially a good sign for the economy, the fact that the big banks may be hurt because some of their big debts are -- bets are not working out. but community banks that rely on the overall growth of economy are doing well. that's a good sign for theecono. >> yeah. but i think with regard to the market the market reacts, it is more of a psychological effect than an economic effect. there are triggers. there are numbers that trigger events but the psychology of a turn is far more important than the metrics of the turn. so what people believe becomes far more morn than what the numbers actually say. so numbers can drive you left or right. and the low and behold by different degrees. the psychology of the turn is what really cause as major change in what's going on. david: speaking of major changes there's a major change in the kind of banks that are flourishing in america.
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it may not be what a lot of people are thinking. some people think the big banks keep getting bigger and small banks are getting squeezed out. in fact over the past 30 years we had amazing cut back in the number of banks in this country. we have fewer than half of the banks we had in the 1980s. however, banks with assets under a billion dollars have actually grown. why is that? >> i think that, depends where you put the point. banks between 100 million and a billion have grown. david: this is according to an fdic report. >> right. banks below 100 million are actually fewer. so the -- david: sweet spot is between 100 million and a billion. why is that? >> that is because a lot of really smaller ones, below 100, are consolidating with themselves or larger banks and creating banks in that range, 100 million to a billion. so that number is actually gone up since 1985. in fact happened to be at a luncheon where chairman of fdic who called for this study was
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very proud of the fact that his people put together the information and improved that community banking was alive and well. so he is very pleased with the result of the study. david: let me just ask, and i don't know the answer to this, but i'm hoping the reshifting in the banking industry means we're getting back to the concept of the lender servicing the loan from the beginning to the end. part of the problem we got into was sending out some parts of a loan to different people rather than having one institution following that loan from beginning to end. is that true? >> no. i believe not. unfortunately, and even though you would suspect that if community banks are alive and well they're serving their community. loans across the country are, for the most part not being done by banks and held by banks. so significantly shifting to nonbank, the, when -- david: servicers. >> in 2008, in 2008, fannie rand freddie represented 50% of the
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market. loans that were being held by them a couple trilliondollars. the reality is that today, they hold about 95% of the market. david: wow. >> that means banks are not holding those assets. where as it used to be banks would service the local, store owner or their local homeowner, they're not. what is happening is it is going into servicers or the very large government entityies. david: that is unsupport gnat. fortunate you're doing so well community banking doing so well. appreciate you coming in. liz? liz: david, imagine a world in which you doesn't have to answer working emails after 6:00 p.m. not in one of the world's biggest economies. we have details straight ahead. as the world's best golfers tee off on the masters we're taking you live to a country club in illinois to speak to the ceo of a company that brand itself, check it, as the open table.com of golf. he wants to take the game into
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the digital aid. there is jeff. he will help us do it. ♪ (dad) well, we've been thinking about it and we're just not sure. (agent) i understand. (dad) we've never sold a house before. (agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here
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and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited. can you start tomorrow? tomorrow we're booked solid. we close on the house tomorrow. tomorrow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. csx. how tomorrow moves.
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david: hundreds of thousands of fans flocking to augusta,
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georgia, as the world's top golfers tee off in the masters, but despite the hype participation in the sport is stagnant. liz: a little expensive. david: that may be a reason why. liz: how is the golf industry chipping its way out of the rough after the recession? jeff flock, got to love this. joining us live from highland park country club in illinois. nice swing, jeff. >> they are chipping it a lot easier than i am chipping it. that wasn't too bad, too close to the hole. you remember gary cohen, guys, the man who took what company to how much? what was that. >> about 200 million to about $2 billion. >> he is trying to do the same with golf now. trying to turn something called tee-off.com into open table of golf. want to look at numbers. golf has had a rough ride. they have been in the rough. look at number of courses. more courses being shut down than being open. number of players that skull tag off too. you see tremendous potential,
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gary. tell us why? >> golf is starting to come back as the economy is starting to come back. it did have a dip. now it is starting to come back. i see a lot of growth potential in the online space. >> only 15%, jeff wright, the guy in charge of tee-off.com, you find it only 15% of people book tees online. you see a lot of potential there. >> absolutely. the golf industry has not given golfers to book tee times on-line. that is changing. teeoff.com, makes it easy to find tee time or course and get out on the golf course. >> gotcha. i'll tell you, you know, putt, see if i get anywhere close to the hole. we've been playing all day. this is what we do for a living today. that is jason, our producer out there. if you putnam members, own masters leaderboard, you see of
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all the golfers, i didn't so so well. only, i almost, and that was for nine holes by the way. i almost beat tim, who is audio man. tim was playing with the mic. he was playing with the boom mic. david: fox business has skin in the game, right, jeff? >> you know, that's a great point. jason dufner, a real up-and-comer, won pga last year. fox business is sponsoring jason dufner. liz: go, jason! >> he is real popular one. look i have a club is actually fox business. it's a fox business putter. liz: have it on the collar. we're cheering him. david: watch, come on, go man. oh, no. you have to give the club back, jeff. i'm sorry. got to give the club back. you had a chance. liz: thanks, jeff. have fun. jeff flock. french employees are given more
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vacation time than most workers right? now there is a move to end some work habits imported from the u.s. details next.
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why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com impact wool exports from new zealand, textile poduction in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds
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beat thei10-year lipper avere. t. rowe price. inest with confidence. request a prospectus or summary prospectu with investment informion, risks, fees and expenses to read and considecarefully beforinvesting. liz: let's go "off the desk." france is telling employees to leave their work at the office door. a new labor agreement outlawed work-related emails after 6:00 p.m., even on smartphones. no more. the deal was signed by some employers in the tech industry. really, they did that? consultancy sectors and circle unions. it will reportedly impact someone million workers. this is tacked on to the just 35-hour work week and five plus weeks of paid vacation already enjoyed by french workers. david: how do you outlaw emails? we asked you on twitter and facebook what is setting off this market selloff today, panic or profit taking? mike on facebook, he says a little bit of both. liz: a little bit of both.
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wayne on facebook says it appears investors are recognizing that tapering may bring an end to the party. we'll see if the markets can stand on their own two feet. david: what will happen to the markets tomorrow? that's at big question. another loss or perhaps profit taking? gerri: hello, everyone i'm gerri willis. a new warning about the "heartbleed" bug. also coming up on "the willis report", beef prices are the highest they have ever been and they're not boeing down anytime soon. also walmart goes big on organic produce but can they keep their everyday low prices? our pegs report, a users guide to education. the most important thing you need to know about financial aid. we're watching out for you on "the willis report." gerri: we begin tonight with the latest developments on the gm recall. gm disciplining two employees at the center of the scandal. the company also put a price tag on the recall. they say the recall will

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